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SHIP OPERATOR COVER
STANDARD RISKS
S1 Carrying Equipment
S2 Third Party Liabilities
S3 Fines & Duty
S4 Cargo Liabilities
S5 Costs
S6 Discretionary Insurance
ADDITIONAL RISKS
S7 Handling Equipment
S8 North American Chassis Liabilities
POLITICAL RISKS
Political Risks (including War Risks On Land)
You are insured for:
1.1
physical loss/damage of insured carrying equipment arising from:
. any accidental cause
. war/strikes riots & terrorist risks*
1.2
your liability for general average and salvage contributions in respect of insured carrying equipment (including war/strikes riots & terrorist risks*)
*subject to 5 below
You are not insured under this Clause:
2.1
for costs of remedying/repairing:
2.1.1
defects in design/manufacture - or for loss/damage to property or equipment arising from the replacement, repair or rectification of property/equipment in respect of which a claim is excluded under this paragraph (2.1.1)
2.1.2
wear and tear
2.1.3
mechanical/electrical breakdown or malfunction
2.2
for loss/damage arising from:
2.2.1
mysterious disappearance (and loss discovered on inventory)
2.2.2
order of any authority
2.2.3
nationalization, embargo, requisition or compulsory purchase by an authority
2.3
for loss/damage to lights, winding handles, tyres /wheels of a chassis/trailer unless due to loss of the chassis/trailer or to an accident also damaging another part of the chassis/trailer
2.4
for risks:
2.4.1
while the equipment is leased to someone else
2.4.2
after the equipment has been requisitioned
2.4.3
after you cease to have an interest in the equipment
2.5
for loss/damage - except actual total loss - to equipment valued as at 6 below at less than:
. US$5000: reefer/tank container or trailer; rail wagon
. US$3000: trailer
. US$1000: all other carrying equipment
3
Declaration
3.1
You will show in your declaration the number of items - and aggregate insured value on the adjustment date - of each type of carrying equipment. You will not reduce the insured value of any item during your account year 4 Container Stowage & Securing System
3.2
The Directors may reduce or reject a claim arising from container stowage on a ship which you own or charter to the extent that the claim is incurred or increased by:
4.1
your failure to adhere to the relevant provisions of the SOLAS Convention, IMDG Code or any other IMO Code or
4.2
a stowage/securing system which is deficient unless the system:
. complies with classification society recommendations or
. has been approved by an organization approved by the Managers or you have taken other reasonable measures to ensure the system was appropriate
5
War/SRT (Strikes Riots & Terrorist) Risks
5.1
CTL (Constructive Total Loss)
If you are deprived by capture or seizure* of possession of equipment for a continuous period of 12 months, it will be regarded as a constructive total loss for the purposes of your insurance for war/SRT risks at the date this period commenced -provided that the equipment:
. was insured for war/SRT risks on that date and
. had not already become a total loss as a result of an insured risk at some time during the period
5.2
You are not insured for war risks arising from:
5.2.1
hostile detonation of a nuclear weapon
5.2.2
war (declared or not) between permanent members of the UN Security Council
5.2.3
capture or seizure* by an authority of your country
5.2.4
seizure* under any customs or quarantine regulation
5.2.5
ordinary judicial process, failure to pay a fine/penalty or provide security or any financial cause
5.3
You are not insured for war or SRT risks if your equipment is in:
. Afghanistan. Israel & the Palestinian Authority
. Algeria. Lebanon
. Angola (including Cabinda). Libya (incl. Gulf of Sidre/Sirte)
. Armenia. Oman
. Azerbaijan. Pakistan
. Chechnya. Sierra Leone
. Congo. Somalia
. Democratic Republic of Congo. Sri Lanka
. Egypt. Sudan
. Eritrea. Syria
. Georgia. Tajikistan
. Indonesia. Turkmenistan
. Iran. Uzbekistan
. Iraq. Yemen (entire territory)
. Persian/Arabian Gulf (and adjacent waters including the Gulf of Oman North of 24oN)
. Gulf of Aqaba and the Red Sea
. Territorial waters of the countries and areas listed above
5.4
Subject to 5.3, if the equipment is not on board an oversea ship or aircraft
when the loss/damage occurs you are insured for war risks only up to a limit of US$50,000 - each accident and in the aggregate each account year
5.5
The Managers may terminate your insurance for war/SRT risks on seven days notice, taking effect at 2400 GMT on the seventh day after issue of the notice
5.6
Insurance for war/SRT risks will automatically terminate on:
5.6.1
hostile detonation of a nuclear weapon (anywhere - whether your equipment is involved or not)
5.6.2
war as at 5.2.2
*Seizure here includes arrest, restraint, detainment, confiscation or expropriation
6
Amounts Recoverable
Amounts recoverable from us will not exceed:
6.1
owned equipment: loss: insured value at time of loss – or market value if no insured value
6.2
damage: reasonable repair costs* - not exceeding insured value at the time of the damage or market value if no insured value
6.3
leased equipment: loss: amount payable under lease - or market value if no amount specified
6.4 damage: reasonable repair costs* - not exceeding amount payable under lease
*may include reasonable cost of your own labor and materials (not exceeding the market cost)
7
Constructive Total Loss (CTL)
If the reasonable costs of repair of damage sustained in one accident are estimated to exceed the applicable amount specified at 6 above, we will pay this amount as a CTL, less any salvage value
8
Interest in Ship/Aircraft
G1:10 does not apply to this clause
S2 THIRD PARTY LIABILITIES CLAUSE
You are insured for:
your liability:
1.1
for physical loss/damage of third party property
1.2
for death, injury or illness of any third party
You are not insured for your liability to your employee except as stated at 3 below.
You are not insured in any case as specified at 2.3
1.3*
To compensate a third party for its liability:
1.3.1
for physical loss/damage of third party property
1.3.2
for death or injury of any third party, including your employee unless excluded at 2.3
1.4*
To compensate:
1.4.1
a third party for its own third party liabilities if your liability arises solely under a contract:
. for lease/sale of equipment for use in your insured services or
. with your subcontractor or joint service/venture partner or
1.4.2
your subcontractor or joint service/venture partner for physical loss/damage to its own property if your liability arises solely under a contract with the subcontractor or joint service/venture partner
1.5
For consequential loss arising from 1.1-1.3 and 1.4.1
*You are insured under 1.3 and 1.4 for your contractual liability only
You are not insured under this Clause for liabilities:
2.1
incurred under a provision in a contract that you incur liability without your fault or negligence
2.2
which are liquidated damages
2.3
for death, injury or illness of your employee which you incur as an employer
2.4
which would normally be insured under an Employers Liability insurance except as specified at 1.4 or 3
2.5
arising from ownership, lease or operation by you/your employee of a road vehicle which is required to be licensed
2.6
arising from an accident in USA/Canada involving your* chassis/trailer for use on public roads
2.7
in respect of your* equipment leased to someone else other than to your joint service/venture partner for use in the joint service
2.8
in respect of your handling equipment used with your consent by someone else
2.9
in respect of your* carrying equipment not insured for loss or damage
2.10
as owner/lessee of land which is not an insured location
2.11
arising from erection or dismantling of insured handling equipment -unless for inspection, maintenance or repair (or relocation if not excluded under 2.12)
2.12
arising from relocation of insured handling equipment -other than within the same terminal, port or depot
2.13
which are contractual liabilities to compensate someone else for physical loss/damage to your* property
*owned or leased Employees
3
The following are insured as specified at 1.2:
. the assured for liabilities directly to an employee of a joint assured and conversely
. a joint assured for liabilities directly to an employee of the assured or another joint assured
4
Transfer of Interest in Equipment under Contract of Sale
You are only insured for liabilities in respect of equipment after your interest in it has been transferred under a contract of sale if:
4.1
we insured it immediately before the transfer and
4.2
the contract of sale:
. provides that the equipment is sold "as is where is" and
. includes no warranty except that the equipment is as described and that the purchaser has quiet use and
. expressly excludes any other warranty, including fitness of use and merchantability and
4.3
the accident occurs during your period of insurance. The date of the accident for these purposes is the date of the loss/damage (or death, injury or illness) - not the date of sale
5
Limit of Liability
In the event that it is held in any court or tribunal that, under the applicable law, anyone, other than the assured, a named joint assured or co-assured, using or legally responsible for the use of a chassis or trailer, is entitled to be insured under this insurance, then the general limit of liability for this insurance for such a person will not exceed the minimum insurance requirements under the applicable law for injury to or death of a person or damage to property
6
Special Limits
Special limit: US$1,000,000 - each accident and in the aggregate each account year - unless otherwise stated in your certificate applies to claims:
6.1
under 1.3.2 & 3 above (and consequential loss arising from these claims under 1.5)
6.2
in USA arising from host liquor
S3 FINES & DUTY CLAUSE
You are insured for:
1.1
the following arising from a breach of regulations specified at 1.2:
1.1.1
your liability for:
. fines and other penalties
. duty and sales/excise tax and similar fiscal charges imposed on you (or anyone acting for you) by an authority and which would not have been payable except for the breach of regulations specified at 1.2
1.1.2
confiscation by an authority of property including your insured equipment
1.2
the regulations referred to at 1.1 relate to:
1.2.1
import/export and carriage of cargo, conveyances or equipment
1.2.2
immigration
1.2.3
safety at work
1.2.4
security/anti-terrorism
1.2.5
pollution -only if arising from physical loss/damage of cargo or equipment. You are not insured under this Clause:
2.1
In respect of regulations relating to tariffs, competition or regulation of companies
2.2
arising from ownership, lease or operation by you/your employee of a road vehicle which is required to be licensed
2.3
in respect of your owned/leased carrying equipment not insured for loss/damage
2.4
for liability/confiscation arising from your making your customs bond/guarantee available to another operator -unless this arises from:
. assistance which the operator provides to you in your insured services or
. insured services which you provide to the operator
3
Joint Service/Venture Partner
You are also insured for your liability to compensate your joint service/venture partner for its liability as specified at 1 above which arises from your failure to perform your contractual obligations
4
Road Carriage
The Directors may reduce or reject a claim for breach of regulations concerning weight of cargo or carrying equipment on a public road if it appears to them that you or your employee have acted (or failed to act) intentionally or recklessly
5
Illegality
If insurance for any of the matters specified at 1 above is held to be illegal, this will apply only to the matters concerned and will not affect other insurance under this clause or elsewhere in your policy
6
Special Limits
6.1
Special limit: US$1,000,000* - claims under 1.2.5
6.2
Special limit: US$100,000* -for liability/confiscation arising from your customer’s failure to pay properly assessed duty/tax - either to an authority or to you
*Each accident and in the aggregate each account year - unless otherwise stated in your certificate
S4 CARGO LIABILITIES CLAUSE
1 You are insured for:
your liability for physical loss/damage of cargo, arising before or after you have carried (or arranged to carry) the cargo, from an item of insured carrying equipment supplied to your customer which:
1.1
is defective or
1.2
fails to meet the requirements of your contract with your customer. You are also insured for your liability for consequential loss arising from 1.1-1.2
You are not insured under this Clause:
2.1
if your liability arises under your contract of carriage
2.2
to the extent that your liability is increased by a declaration of value by your customer
2.3
for liabilities in respect of bullion, precious stones or cash/securities
3
Special Limits
3.1
US$100,000 each accident and in the aggregate each account year*: claims under 1.2
3.2
US$100,000 each accident*: claims in respect of:
. processed tobacco/tobacco products
. bottled spirits
. precious jewellery/precious metal
. valuable works of art
. thoroughbred horses
. computers/handheld electronic products/mobile telephones (and electronic components of these)
*unless otherwise stated in your certificate
S5 COSTS CLAUSE
1
You are insured for the following costs:
1.1
mitigation costs of minimizing a claim under your policy
1.2
investigation & defence
costs arising from investigating an accident which may give rise to a claim under this cover and protecting your interests in relation to it (including legal and survey fees) - including the costs of recovering a debt if payment is withheld solely because of a claim under this cover
1.3
disposal
1.3.1
costs (other than as at 1.3.2) additional to costs which you would have incurred in any event, of disposing of insured equipment or cargo after an accident to it
1.3.2
costs of removing insured carrying equipment on the order of an authority following an accident arising in connection with the management, navigation or operation of a ship which you own, charter or operate
. but not for costs of removing cargo within/on the equipment
. and only to the extent that the costs are not incurred or increased by cargo within/on the equipment
G1:10 is modified to this extent
1.4
quarantine & disinfection (including fumigation) - other than in the normal course of business
Approval/Agreement
You are only insured if:
2.1
the Managers have agreed to the costs or
2.2
the Directors decide that the costs were properly incurred
3 Limits
Unless otherwise stated in your certificate claims are subject to limits as below:
1.1-1.2: as for the claim being investigated/defended, or mitigated, and costs will be included in this claim for this purpose
1.3-1.4: your general limit
4
Deductibles
Unless otherwise stated in your certificate claims are subject to deductibles as below:
1.1: as for the claim being mitigated
1.2-1.4: nil
5
Interest in Ship/Aircraft
G1:10 will not apply to costs specified at 1.1 and 1.2 if the claim (or possible claim) is under S1
S6 DISCRETIONARY INSURANCE CLAUSE
You are insured as follows:
in addition to insurance under other clauses the Directors may in their discretion decide that we will reimburse you for risks incurred:
1.1
incidental to insured services
1.2
in case of interference by an international organization or authority, which the Directors consider is unwarranted or requires investigation
1.3
where the Directors by special direction consider this in our interests, or those of our members
S7 HANDLING EQUIPMENT CLAUSE
You are insured for:
1.1
physical loss/damage of insured handling equipment arising from:
. any accidental cause including mechanical/electrical breakdown or
malfunction
. strikes riots & terrorist risks*
1.2
your liability for general average and salvage contributions in respect of insured handling equipment (including strikes riots & terrorist risks*)
1.3
per diem lease charges incurred when re-delivery to the lessor of your insured leased handling equipment is:
. prevented because the equipment is a total loss or
. delayed because you are obliged to repair it
as a result of an insured risk unless the equipment is leased to you subject to a purchase option exercisable by you or for your benefit Special Limit (1.3): maximum of charges which you incur for 30 days from and including the original redelivery date - unless another period is specified in your certificate
*subject to 4 and 8 below
You are not insured under this Clause:
2.1*
for costs of remedying/repairing:
2.1.1
defects in design/manufacture - or for loss/damage to property or equipment arising from the replacement, repair or rectification of property/equipment in respect of which a claim is excluded under this paragraph (2.1.1)
2.1.2
wear and tear
2.1.3
mechanical/electrical breakdown or malfunction of:
. communications equipment, alarm systems or external computers
. equipment with market value less than US$75,000
2.2*
for loss/damage arising from:
2.2.1
inherent vice or latent defect
2.2.2
subsidence unless this is sudden, unintended and unexpected
2.2.3
computer, data processing or program error/breakdown
*2.1-2.2 are limited to the equipment (or part of the equipment) immediately affected
2.3
for loss/damage arising from:
2.3.1
mysterious disappearance (and loss discovered on inventory) - of spare parts, accessories, plant, tools or materials for maintenance/repair of equipment
2.3.2
nationalization, embargo, quarantine, requisition or compulsory purchase by an authority
2.3.3
overload*
2.3.4
tests under abnormal conditions*
2.3.5
any modification -unless agreed by:
. the manufacturer or
. an authority or
. a surveyor approved by the Managers
2.3.6
erection or dismantling of equipment -unless for inspection, maintenance or repair (or relocation if not excluded under 2.3.7)
2.3.7
relocation of equipment -other than within the same terminal, port or depot
* unless to comply with regulations
2.4
for loss/damage or costs, fines (and other penalties):
2.4.1
arising from the enforcement of any regulation concerning the use, reconstruction, repair or demolition of insured equipment
2.4.2 imposed on you by an authority
other than loss/damage by an authority during a fire, not caused (wholly/partly) by war risks, for the sole purpose of retarding the fire
2.5
for loss/damage arising from cessation/fluctuation/insufficiency of water, gas or electricity supplies
2.6
for loss/damage:
2.6.1
of an expendable/replaceable part -unless arising from loss/damage to the equipment which is external to the part
2.6.2
while the equipment is leased to someone else
2.6.3
after the equipment has been requisitioned
2.6.4
after you cease to have an interest in the equipment
2.6.5
while the equipment is used with your consent by someone else other than a stevedore handling cargo
2.7
for war risks
2.8
for cessation of work
3
Declaration
3.1
You may add additional items subject to notifying us within 28 days of acquisition, and terms to be agreed
3.2
You will not reduce the insured value of any item during your account year
3.3
You will give us immediate notice of any change in location/working conditions which may increase the risk of a claim. If we do not agree to the increased risk, we will not be liable for resulting claims
3.4
A statement of value in your certificate reflects information which you have provided and is not binding on us for the purposes of 5.5
4
SRT (Strikes Riots & Terrorist) Risks
4.1
You are not insured for SRT risks arising from war (including civil war, revolution, rebellion, insurrection and hostile act by/against a belligerent power)
4.2
The Managers may terminate your insurance for SRT risks on seven days notice - taking effect at 2400 GMT on the seventh day after issue of the notice
4.3
Insurance for SRT risks will automatically terminate on:
4.3.1
hostile detonation of a nuclear weapon (anywhere - whether your equipment is involved or not)
4.3.2
war (declared or not) between permanent members of the UN Security Council
4.4
You are not insured for SRT risks if your equipment is in:
. Afghanistan. Israel & the Palestinian Authority
. Algeria. Lebanon
. Angola (including Cabinda). Libya (incl. Gulf of Sidre/Sirte)
. Armenia. Oman
. Azerbaijan. Pakistan
. Chechnya. Sierra Leone
. Congo. Somalia
. Democratic Republic of Congo . Sri Lanka
. Egypt. Sudan
. Eritrea. Syria
. Georgia. Tajikistan
. Indonesia. Turkmenistan
. Iran. Uzbekistan
. Iraq. Yemen (entire territory)
. Persian/Arabian Gulf (and adjacent waters including the Gulf of Oman North of 24oN)
. Gulf of Aqaba and the Red Sea
. Territorial waters of the countries and areas listed above
5
Amounts Recoverable from us - Damage
5.1
We will at our option:
5.1.1
replace what is damaged with equipment of the nearest (but no worse) age, type or condition or
5.1.2
pay reasonable repair costs - not exceeding the insured value including reasonable costs of your own labor and materials, not exceeding the market cost
5.2
We will deduct:
. the value of any part that can be used again
. costs of any other work done in conjunction with the repair
5.3
We will not be responsible for the cost of temporary repairs, or for damage arising from use of equipment in a state of temporary repair, unless we have approved the temporary repair
5.4
You may commence permanent repairs immediately after notifying the Managers - provided you keep any damaged part for our inspection
5.5
If the insured value is also the new replacement value we will pay as at 5.15.3 without deduction for average. If the insured value is less than the new replacement value we will pay:
. cost of materials (including duties and taxes) - reduced by the percentage by which the insured value is less than the new replacement value
. freight charges and labor costs -without deduction for average
6
Amounts Recoverable from us - Total Loss
6.1
Actual total loss (ATL)
We pay the insured value
6.2
Constructive total loss (CTL)
If the reasonable costs of repair of damage sustained in one accident, calculated as at 5 above, are estimated to exceed the insured value, we pay the insured value as a CTL, less any salvage value
6.3
Leased equipment
Our payment will not exceed the lesser of:
. the amount you are obliged to pay under the lease
. the insured value
7
Market/Indemnity Value
7.1
If no insured value has been agreed - substitute market value for insured value in 5-6 above
7.2
If the equipment is over five years old - substitute indemnity value for insured value in 5-6 above. Five years old means handed over by the manufacturer five years before the start of the account year in which the accident occurs
8
Definition of Accident
8.1
For the purposes of this clause, accident means all individual losses or damage arising out of or directly occasioned by one event.
8.2
The extent of an accident is limited to 72 consecutive hours if the cause of the insured loss/damage is one of the following (or if an accident includes one or more individual losses or damage arising from one of the following):
. storm
. earthquake/volcanic eruption
. strikes riots & terrorist risks (in this case the accident is also limited to one city, town or village)
8.3
You may choose the date and time when the period of 72 hours commences and if any event lasts longer than 72 hours you may divide it into two accidents provided:
. no two periods overlap and
. no period commences before your first recorded individual loss in that event during the period of your insurance
8.4
In the case of flood, accident means loss/damage, wherever occurring, arising between the movement of water into or over the insured equipment and its receding, regardless of the time involved except that no accident will be deemed to:
. start before your first recorded individual loss in that accident occurring during the period of your insurance or
. extend beyond 30 days after you cease to be insured
8.5
The definition of accident at G6:2 does not apply to this clause
9
Interest in Ship/Aircraft
G1:10 does not apply to this clause
S8 NORTH AMERICAN CHASSIS LIABILITIES CLAUSE
You are insured for:
The following liabilities arising out of an accident in USA/Canada and involving a chassis or trailer for use on public roads which you own or lease
1.1
your non-contractual liability for:
1.1.1
physical loss/damage of third party property
1.1.2
death injury or illness of any third party
1.2
your contractual liability to:
1.2.1
compensate a third party for its own third party liabilities if your liability arises solely under a contract:
. for lease/sale of equipment for use in your insured services or
. with your subcontractor/joint service partner or
. pertaining to chassis pooling
1.2.2
compensate your subcontractor/joint service partner for physical loss/damage to its own property if your liability arises solely under a contract with the subcontractor/joint service partner
1.3
Your liability for consequential loss arising from 1.1 and 1.2.2
You are not insured under this Clause for Liabilities:
2.1
for death, injury or illness of your employee, or spouse, child, parent or sibling of your employee - or contractual liability to compensate anyone in respect of this
2.2
arising from ownership, lease or operation by you (or your employee) of a road vehicle which is required to be licensed
2.3
arising from an accident involving a chassis/trailer attached to a licensed vehicle which you (or your employee) own, lease or operate
2.4
in respect of your equipment leased to someone else other than:
. to your joint service partner for use in the joint service or
. while interchanged to a motor carrier or used in a chassis pool in which
you participate
2.5
in respect of your handling equipment used with your consent by someone else
2.6
in respect of a chassis/trailer not insured for loss/damage
2.7
incurred after you cease to have an interest in the chassis/trailer. The date of the accident for the purposes of your insurance is the date of the loss/damage (or death injury or illness) - not the date on which your interest ceases
2.8
which are contractual liabilities to compensate someone else for physical loss/damage to your owned/leased property
2.9
arising from handling of cargo:
. before you accept cargo for movement on to the insured chassis/trailer
. after you move cargo from the insured chassis/trailer to the place where
you finally deliver it
2.10
arising from your product or any part of your product
2.11
arising from your work, after that work has been completed or abandoned. For the purposes of this paragraph (2.11) your work includes manufacture and remanufacture of chassis/trailers but excludes maintenance or repair of chassis/trailers by you or on your behalf
2.12
arising from:
. transportation of pollutants as waste
. release of gases, fumes or vapors within a building from materials brought there in connection with operations performed by you or on your behalf
. investigation, clean up or removal of pollution
This paragraph (2.12) will prevail in case of inconsistency with G1:9.2-9.3
2.13
to the extent that they are incurred/increased by your agreeing to hold harmless a transporter of chassis/trailers
2.14
arising from loss/damage or death, injury or illness which:
2.14.1 you intend or expect (without prejudice to G1:9.8)
2.14.2 results from movement of property by a mechanical device (other than a hand truck) unless the device is attached to an insured chassis/trailer
2.15
for war risks
2.16
arising from the conduct of any current or past partnership or joint venture not specified as an assured under this clause in your certificate
3
Scope of Insurance
3.1
You are only insured to the extent that liabilities are not insured under other insurances available to you and other parties besides the domestic policy
3.2
You will use your best endeavors to recover losses, and claim indemnity from other parties (and their insurers)
3.3
This insurance:
3.3.1
does not insure other parties
3.3.2
is in excess of any sums recoverable from other parties (or their insurers)
3.3.3
is not automobile or excess automobile liability insurance
3.4
Other parties means parties other than you involved in the accident, and any owner, lessor, lessee, operator or user of the chassis/trailer (or motor vehicle towing it)
4
Domestic Policy
4.1
On your request we will provide you with a certificate of insurance evidencing a policy issued by an approved insurer in USA/Canada, insuring your liability as specified at 1 above (a domestic policy)
4.2
The domestic policy is subject to its terms, to a special limit of US$ 10,000,000 each accident, unless a lower limit is specified in your certificate, and to a retained amount of US$ 200,000 each accident
4.3
The limits at 4.2 are not in addition to your limit with us. The total of your limits under the domestic policy and under your insurance with us will therefore not exceed your limit for claims under this clause
4.4
You will be a joint assured together with us under the domestic policy but will not:
. be responsible for payment of premium to the domestic underwriter
. exercise any right to cancel the policy
. be responsible for the retained amount unless otherwise stated in your certificate
5
Limit of Liability
In the event that it is held in any court or tribunal that, under the applicable law, anyone, other than the assured, a named joint assured or co-assured, using or legally responsible for the use of a chassis or trailer, is entitled to be insured under this insurance, then the general limit of liability for this insurance for such a person will not exceed the minimum insurance requirements under the applicable law for injury to or death of a person or damage to property
6
Uniform Intermodal Interchange & Facilities Access Agreement .It is a condition precedent that the Uniform Intermodal Interchange and Facilities Access Agreement (UIIA) of 15 September 2000, or other similar equipment interchange or lease agreement which the Managers have approved, remain in effect and in good standing at all times during your period of insurance
POLITICAL RISKS (incl. WAR RISKS ON LAND)
You are insured for:
1.1
Physical loss/damage of insured equipment arising from:
1.1.1
war risks
1.1.2
disappearance reasonably attributable to a war risk
1.1.3 nationalization, requisition and compulsory purchase by an authority
Maximum insured value of any item: US$50,000
1.2
Investigation, defence and mitigation costs arising from:
. investigating an accident which may give rise to a claim under this clause and protecting your interests in relation to it (including legal and survey fees)
. minimizing a claim under this clause but only if:
. the Managers have agreed to the costs or
. the Directors decide that the costs were properly incurred
You are not insured under this Clause for loss/damage or costs:
2.1
while the equipment is on board an oversea ship/aircraft
2.2
if the equipment last entered the country where the damage occurred before your insurance under this clause started
2.3
while the equipment is leased to someone else
2.4
after you cease to have an interest in the equipment
2.5
arising in:
. Afghanistan
. Algeria
. Angola (incl. Cabinda)
. Armenia
. Azerbaijan
. Chechnya
. Congo
. Democratic Republic of Congo
. Egypt
. Eritrea
. Georgia
. Indonesia
. Iran
. Iraq
. Israel & Palestinian Authority
. Lebanon
. Libya
. Oman
. Pakistan
. Sierra Leone
. Somalia
. Sri Lanka
. Sudan
. Syria
. Tajikistan
. Turkmenistan
. Uzbekistan
. Yemen (entire territory)
These claims are excluded by agreement under 5.1.1
2.6
arising from capture by an authority of:
. your country or
. another country - in connection with a dispute with your country Capture here includes seizure, arrest, restraint, detainment, confiscation or expropriation - and attempts at, and consequences of, these
2.7
arising from nationalization, requisition or compulsory purchase by an authority of:
. your country or
. another country -if compensation is payable to you (or for your benefit)
2.8
arising from war (or belligerent/hostile act) involving your country
2.9
arising from war (declared or otherwise) between permanent members of the UN Security Council
2.10
arising from sanctions by any government against your country
2.11
arising from any contract to which you are a party
2.12
arising from repossession of the equipment by a title holder
2.13
arising from quarantine or customs regulations
2.14
arising from ordinary judicial process, failure to pay a fine/penalty or provide security or any financial cause
3
Political Risks Account Year
The political risks account year runs from 0000 GMT on 1 January to 2400 GMT on 31 December
4
Deprivation of Possession
If you are deprived by a matter specified at 1 above of possession of equipment for a continuous period of 270 days, it will be regarded as a constructive total loss at the date this period commenced -provided that, at the start of the period the equipment:
. was insured under this clause
. had not previously become a total loss under this clause
5
Exclusions by Managers
5.1
The Managers may agree the following exclusions:
5.1.1
claims in specified countries/areas are not insured
5.1.2
specified claims are not insured
5.2
subject to the following:
5.2.1
these agreements may differ between one assured and another
5.2.2
the Managers may make, cancel or modify an agreement
. on terms as they think fit
. at any time - but not retrospectively
6
Restrictions/Exclusions by Directors
6.1
The Directors may make the following restrictions/exclusions:
6.1.1
restrict claims in specified countries/areas to the current aggregate value of each assured's equipment in the country/area, subject to the following:
. value means value at the time the restriction takes effect - and is calculated as at 10 below
. the Directors’ decision will not be retrospective
. the Managers will inform you promptly
6.1.2
exclude claims in respect of equipment entering a specified area/country after notice of the exclusion takes effect - which will be not less than seven days from 2400 GMT on the day notice is issued
6.1.3
cancel or modify restrictions/exclusions specified at 6.1.1/6.1.2 - at any time on giving notice - but this will not reinstate cover in respect of claims already restricted/excluded
6.2
subject to the following:
6.2.1
there will be no return of premium as a result of the exercise of powers specified at 6.1
6.2.2
you are deemed to know of, and are subject to, decisions already in effect at the start of your insurance - whether or not you have received notice of them
7
Political Risks Claims & Political Risks Maximum Claims under this clause for all members for each political risks account year, against both Associations (specified at G6:1.3.2), defined as political risks claims, will not exceed the political risks maximum of US$4,000,000 (after any reduction as a result of a limit of liability applicable to any claim) regardless of the countries in which the claims arose or of any other factor
8
Determination by the Directors
8.1
The Directors will determine on 30 September each year whether the political risks maximum for the preceding political risks account year has been exceeded
8.2
If it has not been:
we will pay political risks claims arising from events occurring in the preceding political risks account year
8.3
If it has been:
we will reduce the total political risks claims (including costs) to the political risks maximum - and pay individual claims proportionately
8.4
The Directors may review the determination specified at 8.1 at any time. Claims will then be paid (or reduced) as at 8.2 or 8.3, as appropriate
8.5
No political risks claim will be paid until after the determination specified at 8.1 - unless (and to the extent that) the Directors decide otherwise
9
Overspill Claims
9.1
If political risks claims arising from events in one political risks account year exceed the political risks maximum the excess, up to US$1,500,000*, will be carried forward to the next year - and paid in that year if (and to the extent that) claims for that year do not exceed the political risks maximum*
9.2
If the excess exceeds US$1,500,000* each individual claim will be reduced in proportion and carried forward to the next year
9.3
If (and to the extent that) overspill claims cannot be paid in the next year they will cease to be recoverable
9.4
Determination and review as specified at 8.1 and 8.4 will include determination of the amount available to pay overspill claims
9.5
Individual overspill claims will be paid in proportion to the amount available to pay overspill claims
9.6
Your right to overspill claims ceases if your insurance under this clause ceases
*after determination as at 8.1 or 8.4
10
Maximum Claim
Political risks claims will not exceed (subject to the maximum insured value specified at 1.1):
10.1
Owned equipment: Loss: insured value at time of loss - or market value if no insured value
10.2
Damage: reasonable repair costs* - not exceeding insured value at the time of the damage or market value if no insured value
10.3
Leased equipment: Loss: amount payable under lease - or market value if no amount specified
10.4
Damage: reasonable repair costs* - not exceeding amount payable under lease
*may include reasonable cost of your own labor and materials (not exceeding the market cost)
11
Additional Provisions (Claims Payments)
11.1
Claims are not subject to average
11.2
Constructive total loss (CTL) claims must relate to damage sustained in one accident
12
Barred Claims
A claim will be barred if you have not given notice of it to the Managers by 30 September following the political risks account year in which it arises unless the Directors otherwise decide - without prejudice to G2:1. This is a condition precedent
13
Warranties
13.1
You warrant that you will:
13.1.1
comply with all laws and regulations of the country where the equipment is and of your country - including those relating to permits/licences
13.1.2
maintain records allowing the location of equipment to be ascertained at any time
13.2
If you are in breach of 13.1 we will not pay claims unless and to the extent that:
13.2.1
you prove the claim did not result from the breach or
13.2.2
the Directors waive the breach on conditions as they think fit
14
Cessation & Cancellation
14.1
The insurance will cease automatically on:
14.1.1
any hostile detonation of a nuclear weapon (anywhere and whether your equipment is involved or not)
14.1.2
war as specified at 2.9
14.2
If you cease to be insured as specified at G3:10:
G3:11 will apply unless you have a pending political risks claim arising from an event occurring in the current political risks account year, in which case you will be liable for all amounts due to us for that year
14.3
If your insurance is cancelled as specified at G3:16:
you will be liable for all amounts due to us for the current political risks account year or for the minimum period of the insurance - whichever is the greater